Common use of EXTRA-CONTRACTUAL DAMAGES Clause in Contracts

EXTRA-CONTRACTUAL DAMAGES. In no event shall the Reinsurer participate in Punitive Damages, Compensatory Damages, or Bad Faith Damages that are awarded against the Company as a result of an act, omission or course or conduct committed solely by the Company in connection with the Covered Policies. The Reinsurer shall, however, pay its share of Statutory Penalties awarded against the Company in connection with insurance reinsured under this Agreement if the Reinsurer elected to join in the contest of the coverage in question. The parties recognize that circumstances may arise in which equity would require the Reinsurer, to the extent permitted by law, to share proportionally in certain damages. Such circumstances are difficult to define in advance, but generally would be those situations in which the Reinsurer was an active party or consented in advance and in writing to the act, omission or course or conduct of the Company, which results in the assessment of Punitive Damages, Compensatory Damages, or Bad Faith Damages. In such situations, the Company and the Reinsurer shall share such damages so assessed, in equitable proportions.

EXTRA-CONTRACTUAL DAMAGES. In no event shall the Reinsurer participate in Punitive Damagespunitive, Compensatory Damagescompensatory, or Bad Faith Damages that bad faith damages as described below, which are awarded against the Company as a result of an act, omission or course or of conduct committed solely by the Company in connection with the Covered Policiesinsurance reinsured under this Agreement. The Reinsurer shall, however, pay its share of Statutory Penalties statutory penalties awarded against the Company in connection with insurance reinsured under this Agreement if the Reinsurer elected to join in the contest of the coverage in question. The parties recognize that circumstances may arise in which equity would require the Reinsurer, to the extent permitted by law, law to share proportionally proportionately in certain assessed damages. Such circumstances are difficult to define in advance, but generally would be those situations in which the Reinsurer was an active party or and consented in advance and in writing to the act, omission or course or conduct of action of the Company, which directly results in the assessment of Punitive Damages, Compensatory Damages, or Bad Faith Damagespunitive and/or compensatory damages. In such situations, the Company and the Reinsurer shall share such damages so assessed, in equitable proportions.. For the purposes of this provision, the following definitions shall apply:

EXTRA-CONTRACTUAL DAMAGES. In no event shall the Reinsurer participate in Punitive Damages, Compensatory Damages, or Bad Faith Damages that are awarded against the Company as a result of an act, omission or course or conduct committed solely by the Company in connection with the Covered Policies. The Reinsurer shall, however, pay its share of Statutory Penalties awarded against the Company in connection with insurance reinsured under this Agreement if the Reinsurer elected to join in the contest of the coverage in question. The parties recognize that circumstances may arise in which equity would require the Reinsurer, to the extent permitted by law, to share proportionally in certain damages. Such circumstances are difficult to define in advance, but generally would be those situations in which the Reinsurer was an active party or consented in advance and in writing to the act, omission or course or conduct of the Company, which results in the assessment of Punitive Damages, Compensatory Damages, or Bad Faith Damages. In such situations, the Company and the Reinsurer shall share such damages so assessed, in equitable proportions.

EXTRA-CONTRACTUAL DAMAGES. In no event shall the Reinsurer participate in Punitive Damagespunitive, Compensatory Damagescompensatory, or Bad Faith Damages that bad faith damages as described below, which are awarded against the Company as a result of an act, omission or course or of conduct committed solely by the Company in connection with the Covered Policiesinsurance reinsured under this Agreement. The Reinsurer shall, however, pay its share of Statutory Penalties statutory penalties awarded against the Company in connection with insurance reinsured under this Agreement if the Reinsurer elected to join in the contest of the coverage in question. The parties recognize that circumstances may arise in which equity would require the Reinsurer, to the extent permitted by law, to share proportionally proportionately in certain assessed damages. Such circumstances are difficult to define in advance, but generally would be those situations in which the Reinsurer was an active party or and consented in advance and in writing to the act, omission or course or of conduct of the Company, which directly results in the assessment of Punitive Damages, Compensatory Damages, or Bad Faith Damagespunitive and/or compensatory damages. In such situations, the Company and the Reinsurer shall share such damages so assessed, in equitable proportions.. For the purposes of this provision, the following definitions shall apply:

EXTRA-CONTRACTUAL DAMAGES. In no event shall the The Reinsurer will not participate in Punitive Damages, Compensatory Damages, punitive or Bad Faith Damages compensatory damages that are awarded against the Ceding Company as a result of an act, omission or course or of conduct committed solely by the Company Ceding Company, its agent, or representatives in connection with the Covered Policiesclaims covered under this Agreement. The Reinsurer shallwill, however, pay its share of Statutory Penalties statutory penalties awarded against the Ceding Company in connection with insurance reinsured claims covered under this Agreement if the Reinsurer elected to join has joined in the contest of the coverage in question. The parties recognize that circumstances may arise in which equity would require the Reinsurer, Reinsurer to the extent permitted by law, to share proportionally proportionately in certain punitive and compensatory damages. Such circumstances are difficult to define in advance, but would generally would be those situations in which the Reinsurer was an active party or consented in advance party, and in writing to writing, recommended, consented to, or ratified the act, omission act or course or of conduct of the Company, which results Ceding Company that ultimately resulted in the assessment of Punitive Damages, Compensatory Damages, or Bad Faith Damagesthe extra-contractual damages. In such situations, the Company Reinsurer and the Reinsurer shall Ceding Company will share such damages so assessed, in equitable proportions.. For the purposes of this Article, the following definitions will apply: